The Paris stock market gained almost 0.4% this morning, around 7970 points, driven by Stellantis (+1.6%) and STMicro (+1.2%), but penalized by the downturn in the banking sector, with -1.3% for Société Générale, -1.1% for Crédit Agricole and -0.8% for BNP Paribas.

These three banks were also the biggest decliners on the stock market.

This morning, market participants took note of a number of statistics. In line with the trend observed since the beginning of the year, the HCOB composite PMI index for overall activity in the eurozone rose to 52.2 in May, from 51.7 in April, and thus reached its highest level for a year.

In France, on the other hand, the HCOB PMI composite index of overall activity fell for the second time since December 2023, to 48.9 in May from 50.5 in April, signalling a return to contraction after the weak growth recorded the previous month.

In the US, the ADP survey of private-sector job creation - to be released in the early afternoon - should again testify to the strength of the labor market ahead of the official monthly employment report due on Friday.

Beyond macroeconomic indicators, investors are also keeping their eyes on the European Central Bank (ECB), which will meet its governing council tomorrow.

Analysts are widely expecting the Frankfurt institution to formalize its first rate cut since 2019.

Although this meeting may be a non-event from the market's point of view, we believe that once policy easing begins, European interest rates on the short end of the curve will fall," says François Rimeu, senior strategist at CMAM.

On the bond front, the yield on ten-year Treasuries is hovering around 4.34%, while that on the German Bund with the same maturity is at around 2.54%, a far cry from the peaks set last week.

Brent crude oil prices have recovered slightly from their slump of recent days. The barrel is trading at $77.6 (+0.6%).

In corporate news, Orange announces a new strategic partnership with Silknet, Georgia's leading fixed and mobile network provider, as part of its Orange Alliance program, effective June 3.

TotalEnergies reports several important advances towards the FID (final investment decision) for the offshore block 58 development project in Suriname, with the decision expected in the fourth quarter of 2024 for production start-up in 2028.

Finally, Air Liquide announces that it will invest over $250 million in the construction of an industrial gas production site in the United States, to supply the new plant of one of the world's leading semiconductor manufacturers.

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